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Technology, Trade, And Growth: The Role Of Education

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  • Prettner, Klaus
  • Strulik, Holger

Abstract

We generalize a trade model with firm-specific heterogeneity and R&D-based growth to allow for endogenous education and fertility. The framework is able to explain cross-country differences in living standards and trade intensities by the differential pace of human capital accumulation among industrialized countries. Consistent with the empirical evidence, scale matters for relative economic prosperity as long as countries are closed, whereas scale does not matter in a fully globalized world. The average human capital of a country, by contrast, influences its relative economic prosperity irrespective of trade-openness.

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  • Prettner, Klaus & Strulik, Holger, 2016. "Technology, Trade, And Growth: The Role Of Education," Macroeconomic Dynamics, Cambridge University Press, vol. 20(5), pages 1381-1394, July.
    • Handle: RePEc:cup:macdyn:v:20:y:2016:i:05:p:1381-1394_00
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    Cited by:

    1. Koichi Fukumura & Kohei Nagamachi & Yasuhiro Sato & Kazuhiro Yamamoto, 2020. "Demographics, immigration, and market size," The Japanese Economic Review, Springer, vol. 71(4), pages 597-639, October.
    2. Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2022. "Culture and stages of economic development," Economics Letters, Elsevier, vol. 210(C).
    3. Prettner, Klaus & Strulik, Holger, 2018. "Trade and productivity: The family connection redux," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 276-291.
    4. Chu, Angus C. & Furukawa, Yuichi & Zhu, Dongming, 2016. "Growth and parental preference for education in China," Journal of Macroeconomics, Elsevier, vol. 49(C), pages 192-202.
    5. Koichi Fukumura & Kohei Nagamachi & Yasuhiro Sato & Kazuhiro Yamamoto, 2017. "Demographics, Immigration, and Market Size," CIRJE F-Series CIRJE-F-1048, CIRJE, Faculty of Economics, University of Tokyo.
    6. Maja Nikšić Radić & Hana Paleka, 2020. "Higher Education Funding and Economic Growth: Empirical Evidence from Croatia," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(3), pages 409-421, September.
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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